Shulou(Shulou.com)11/24 Report--

On April 27, according to foreign media reports, Samsung Electronics, which had unintentionally cut its production of memory chips, finally decided to cut production after it was expected that its operating profit in the first quarter would fall by more than 90% compared with the same period last year.

The latest reports show that Samsung Electronics has been pushing ahead with production cuts since it announced its decision to cut production of memory chips, reducing investment in production equipment and adjusting capacity utilization since the announcement.

According to foreign media reports, Samsung Electronics announced its decision to reduce production in order to promote the balance of supply and demand in the market on April 7, when it gave its first-quarter performance forecast and expected operating profit to fall to about 600 billion won (CTOnews.com Note: currently about 3.108 billion yuan).

However, at that time, foreign media also mentioned in the report that Samsung Electronics only cut short-term production. In a statement to foreign media, they said that they have adjusted their short-term production plans, but as they expect long-term demand to remain strong, they will also continue to invest in infrastructure to ensure the necessary clean rooms. and expand investment in research and development to consolidate technology leadership.

Samsung Electronics is the largest memory chip manufacturer in the world. when the market supply exceeds demand, demand and prices both decline, they take the initiative to reduce production, which helps to balance market supply and demand as soon as possible and stabilize prices.

Against the backdrop of poor demand for memory chips and falling prices, Samsung Electronics's storage business has also been affected, with revenue falling to 8.92 trillion won (currently about 46.206 billion yuan) in the first quarter, down 56% from a year earlier and 27% from a month earlier. Its device solutions division also turned from profit to loss in the first quarter, with an operating loss of 4.58 trillion won (currently about 23.724 billion yuan).

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